Berkshire Hathaway HomeServices Northwest Real Estate Federal Way & Puyallup

  The National Association of Realtors’ most recent Pending Home Sales Index, released This Week in Real Estate , reported an all-time high reading in November. All major regions posted double-digit year-over-year increases. Below are a few newsworthy events from the final week of 2020 that influence our business:    * Contract Signings Surge to Record High for November. Sales have slowed slightly from the high levels recorded this fall. Pending home sales slid in November by 2.6% compared to those in October, according to the National Association of Realtors’ Pending Home Sales Index, released on Wednesday. Pending home sales are still up 16.4% compared to a year ago. All major regions are posting double-digit year-over-year increases. NAR’s Pending Home Sales Index reached a reading of 125.7 in November - an all-time high. NAR’s chief economist, Lawrence Yun, predicts home sales to continue to perform strongly in 2021. He expects existing-home ...

  According to the Census Bureau This Week in Real Estate single-family housing starts increased for the seventh consecutive month in November, climbing to the highest level since 2007 and 27.1% higher than last year. Below are a few newsworthy events from the third week of December that influence our business:    * Single-Family Housing Starts Reach Highest Level Since 2007. Single-family housing starts continued their seven-month climb in November, coming in to the highest level since 2007, according to the Census Bureau. Housing starts rose 1.2% in November compared to October and are up 12.8% year over year to a seasonally adjusted annual pace of 1.58 million starts. Single-family housing starts rose 0.4% from October and 27.1% compared to last year.  “Additionally, permits for new single-family construction also rose to 2007 highs, potentially an indication that we might see the increase in homebuilding continue into early 2021,“ K...

  In a year that was financially devastating for many Americans, some good news for most homeowners is the dramatic gain in home equity over the last twelve months. Last week,  CoreLogic  released its  2020 3rd Quarter Homeowner Equity Insights  report, which reveals four major findings: U.S. homeowners with mortgages have seen their equity increase by a total of $1 trillion since the third quarter of 2019. The average homeowner gained approximately $17,000 in equity over the past year. This is a 10.8% increase in equity over last year. The average household with a mortgage now has $194,000 in home equity. This has given many homeowners the ability to redesign their homes to meet their changing needs. Frank Martell,  President and CEO  of  CoreLogic , explains in the report: “The housing market has remained a strong pillar in an otherwise tumultuous economic year. A sharp rise in demand, spurred by record-low interest rates, continues to bolster h...

  This year will be remembered for many reasons, and optimism is one thing that’s been in short supply since the spring. We’re experiencing a global pandemic, social unrest, an economic downturn, and natural disasters, just to name a few. The challenges brought on by the health crisis have also forced many homeowners to reevaluate their space and what they need in a home going into 2021. So, experts are forecasting that next year is one in which we can be optimistic about real estate for three key reasons. 1. The Economy Is Expected to Continue Improving Tim Duy from the  University of Oregon  puts it this  way : “There is nothing fundamentally ‘broken’ in the economy that needs to heal…there was no obvious financial bubble driving excessive activity in any one economic sector when the pandemic hit…With Covid-19 cases surging again, it is understandably hard to look optimistically to the other side of this winter…Don’t let the near-term challenges distract from the e...

  According to CoreLogic This Week in Real Estate homeowners experienced a gain of $1 Trillion in equity in the third quarter thanks to surging price appreciation. Below are a few newsworthy events from the second week of December that influence our business:    * U.S. Homeowners Gained $1 Trillion of Equity in Q3. CoreLogic's latest Home Equity Report for the third quarter of 2020 shows U.S. homeowners with mortgages (which account for roughly 63% of all properties) have seen equity increase by 10.8% year over year, representing a collective equity gain of $1 trillion, and an average gain of $17,000 per homeowner, since the third quarter of 2019. This marks the largest average equity gain since the first quarter of 2014. Despite the economic impact of the pandemic, home prices soared throughout the summer and fall. Appreciation reached its highest level since 2014 in the third quarter of 2020 as prospective homebuyers continued to compet...

  Some Highlights Buying a home in today’s sellers’ market doesn’t have to feel like an uphill battle. Here are four ways to make sure you’re positioned for success when making a home purchase, even when the scale tips toward sellers. Reach out to a local real estate professional to make sure you’re armed for victory in the housing market this season. DECEMBER 11, 2020 / BY  KCM CREW

  If you’re one of the many homeowners thinking about taking your house off the market for the holidays, hang on. You definitely don’t want to miss the great selling opportunity you have right now. Here’s why this month is the optimal time to make sure your house is available for holiday buyers. The latest  Existing Home Sales Report  from  The National Association of Realtors  (NAR) shows the inventory of houses for sale has dropped to an astonishing all-time low. It now sits at a  2.5-month supply  at the current sales pace. Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market, in which there are enough homes available for active buyers  (See graph below): When the supply of houses for sale is as low as it is today, it’s much harder for buyers to find homes to purchase. This means competition among purchasers rises and more bidding wars take place, making it essential for buyers to submit very attractive  offers . ...

  Talk of a housing bubble is beginning to crop up as home prices have appreciated at a rapid pace this year. This is understandable since the appreciation of residential real estate is well above historic annual averages. According to the  Federal Housing Finance Agency  (FHFA), annual  appreciation  since 1991 has averaged 3.8%. Here are the latest 2020 appreciation numbers from three reliable sources: FHFA : 7.8% CoreLogic : 7.3% Case-Shiller : 7% It’s easy to jump to the conclusion that house appreciation is out of control in today’s market. However, we need to put these numbers into context first. Inflation and the Comeback from the Housing Crash Following the housing crash, home values depreciated dramatically from 2007-2011. Values are still recovering from that unusually long period of falling prices. We must also realize that normal inflation has had an impact. Bill McBride, the founder of the well-respected  Calculated Risk  blog, recently su...